单选题 Passage 1 Liquidity is a measure of how quickly an item may be converted to cash. Therefore, cash is the most liquid asset. Account receivable is a relatively liquid asset because the business expects to collect the amount in cash in the near future. Supplies are less liquid than accounts receivable. Users of financial statements are interested in liquidity because business difficulties often arise owing to shortage of cash. How quickly can the business convert an asset to cash and pay a debt? How soon must a liability be paid? These are questions of liquidity.

单选题 Long-term assets are all assets other than current assets.

单选题 Supplies are less liquid than accounts receivable, and furniture and buildings are even less so.

单选题 People are interested in liabilities on the balance sheet because it is relatively liquid.